Mirach reports strong output from KM field, to reopen 29 old wells
Wednesday, May 13 2015 - 01:21 AM WIB
SGX-listed Mirach Energy Limited reported strong first quarter oil production from the Kampung Minyak (KM) Field in South Sumatra as the company plans to reopen up to 29 old wells this year.
Mirach said in a statement Tuesday that in the first quarter of this year, total gross lifting of crude oil was 11,603 barrels and total incremental oil production amounted to 6,682 barrels, which respectively a jump of 35 percent and 112 percent compared to the corresponding quarter of last year (1Q2014).
?This was due to better well servicing which proved successful in increasing production since November 2014,? the company said in the statement.
The company said the management will continue to work on stabilizing operations at KM Field and improve operational reliability.
Elsewhere, Mirach said it plans to reopen up to 29 old wells in 2015. Some of the 29 old wells might be simple reactivation and some might require workover. If workover is required, the group plans to use hydro-slotting perforation instead of the conventional use of explosives.
Hydro-slotting perforation is a much cheaper method of perforation by using hydraulic pressure to fracture rocks. As no explosives will be used, time lag to wait for explosive permits will be eliminated and logistical/warehousing cost of explosives will also be reduced.
Mirach said the group might also commence EOR hydro-injecting pilot program trials to optimize production by the third quarter of this year.
Mirach Energy is licensed to produce oil at the Kampung Minyak Field in South Sumatra, Indonesia, for 15 years under a KSO (Joint Operation Agreement) with Indonesia?s state-owned oil and gas firm PT Pertamina. The field covers 45 square kilometers with 65 million barrels of OOIP mainly located in the reservoir formation between 200-500 meters. The company is partnering with one of the most successful EOR firms in Asia, Daqing Enterprise International, a subsidiary of PetroChina Daqing Oilfield Company Limited, to rejuvenate the field and enhance production rates.
Editing by Reiner Simanjuntak